PERNOD RICARD

Strategic Analysis of Pernod Ricard

Strategic Analysis of Pernod Ricard

Characteristics and Attractiveness of the Pernod Ricard' Market

Pernod Ricard is considered as one of the leading firms in the spirits and wines market of the world. The reason of such is that the firm has been focused on the decentralization in the management structure. The Pernod Ricard is managed into the subsidiaries and holding company, as the subsidiaries are accountable for the operational decision making regarding the business activities. However, the holding company is more concerned about the monitoring and strategic management of the overall business activities of the group.

Pernod Ricard has two types of subsidiaries that include Market Companies and Brand Companies. The Market Companies are independent subsidiary firms which are accountable for administering the development and distribution of the brands in the domestic marketplace. Besides it, the Brand Companies are also self-directed subsidiary firms which are accountable for administering the tactics that relates to manufacturing and brand development.

In addition to this, the Pernod Ricard is focused on spirits and wines, it is managed into four operating segments which are classified on the geographical basis that include Americas, Asia and rest of the world, Europe and France. Moreover, the wide range of spirits and wines of group entail anise, champagne, cognac, gin, liqueur, rum, vodka, whisky and wine.

Strengths of Pernod Ricard

In relation to the characteristics and attractiveness of the Pernod Ricard' market, the strengths of company includes the following:

Top fourteen brands offer strong leadership place to Pernod Ricard;

Reduction of business risks because of the diversified business operations;

Decentralization of business structure.

Opportunities of Pernod Ricard

Besides it, in context of characteristics and attractiveness of the Pernod Ricard' market, the opportunities includes the following:

Growth of the wine market;

Positive position for international spirits market.

Generating and Sustaining the Competitive Advantage of Pernod Ricard

Competitive advantage of a Pernod Ricard may include:

Pernod Ricard can provide a very large range of products to attract different segments of customers;

Pernod Ricard offer products at low prices reasonable quality for buyers;

The firm offer products at the highest quality at affordable prices;

The firm offer products most suited buyers requirements;

Pernod Ricard can provide high aggregate value of the products through a well thought out mix, which is optimal combination attractive for the buyer of high quality, affordable price, brand, service performance and other after-sale service, and so on;

Pernod Ricard dominate a geographical area by placing optimal outlets and a very good image in the eyes of buyers;

Large size and creating an attractive high because of large size;

Pernod Ricard is able to provide some products niche even without the extremely high volume of sales stands firm in a monopoly position.

Regardless of the way in which Pernod Ricard create their competitive advantage to all this is common the fact that they manage to create a large number of loyal customers who purchase products as perceived as having a higher overall value.

Another characteristic of Pernod Ricard manage to maintain the competitive advantage is that constantly investing significant sums to try to still appeal to "gain consumers' investing ...